Kelly Services (NASDAQ:KELYA) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Kelly Services has been upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating, reflecting increased confidence from investment analysts.
• The company's stock currently has a consensus rating of "Buy" with an average target price of $25.00, according to Barrington Research which reiterated its outperform rating.
• Kelly Services reported earnings of $0.54 EPS for the last quarter, matching consensus estimates, but the company experienced a negative net margin of 0.14% despite generating $1.10 billion in revenue.

Wall Street Zen upgraded shares of Kelly Services (NASDAQ:KELYA - Free Report) from a buy rating to a strong-buy rating in a research note published on Sunday.

Separately, Barrington Research reissued an "outperform" rating and issued a $25.00 price target on shares of Kelly Services in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $25.00.

Kelly Services Price Performance

Shares of NASDAQ KELYA traded up $0.14 during mid-day trading on Friday, reaching $13.92. 215,459 shares of the company were exchanged, compared to its average volume of 304,770. Kelly Services has a 52 week low of $10.80 and a 52 week high of $22.44. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $490.68 million, a PE ratio of -69.60, a PEG ratio of 0.49 and a beta of 0.89. The company's 50 day moving average price is $13.40 and its 200 day moving average price is $12.58.

Kelly Services (NASDAQ:KELYA - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The business services provider reported $0.54 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.54. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.12 billion. Kelly Services had a negative net margin of 0.14% and a positive return on equity of 5.65%. Kelly Services has set its Q3 2025 guidance at EPS. Sell-side analysts forecast that Kelly Services will post 2.45 earnings per share for the current fiscal year.

Kelly Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Wednesday, August 20th were given a dividend of $0.075 per share. The ex-dividend date was Wednesday, August 20th. This represents a $0.30 annualized dividend and a dividend yield of 2.2%. Kelly Services's payout ratio is currently -150.00%.

Insider Activity

In related news, SVP Daniel H. Malan sold 10,000 shares of the business's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $14.24, for a total transaction of $142,400.00. Following the transaction, the senior vice president owned 95,281 shares in the company, valued at $1,356,801.44. The trade was a 9.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kelly Services

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC increased its position in shares of Kelly Services by 123.8% during the second quarter. Squarepoint Ops LLC now owns 191,808 shares of the business services provider's stock valued at $2,246,000 after buying an additional 106,100 shares during the period. State of Wyoming purchased a new stake in Kelly Services in the second quarter worth about $116,000. Tower Research Capital LLC TRC grew its holdings in Kelly Services by 83.5% in the second quarter. Tower Research Capital LLC TRC now owns 4,324 shares of the business services provider's stock worth $51,000 after purchasing an additional 1,967 shares during the period. Tidal Investments LLC boosted its position in shares of Kelly Services by 54.0% in the 2nd quarter. Tidal Investments LLC now owns 36,268 shares of the business services provider's stock worth $425,000 after purchasing an additional 12,710 shares in the last quarter. Finally, Man Group plc boosted its position in shares of Kelly Services by 6.6% in the 2nd quarter. Man Group plc now owns 24,780 shares of the business services provider's stock worth $290,000 after purchasing an additional 1,532 shares in the last quarter. Hedge funds and other institutional investors own 76.34% of the company's stock.

Kelly Services Company Profile

Kelly Services, Inc, together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions.